Australia Post has suspended most shipments to the United States as countries worldwide brace for new tariffs on low-value parcels, raising questions about the impact on small businesses and consumers.
Dr Nicola Charwat, Senior Lecturer in Business Law and Taxation at Monash Business School, said the suspension would have direct consequences for Australian exporters.
“Australia has joined a growing number of countries suspending small parcel shipments to the US following the removal of a de minimis ‘loophole’ that has allowed parcels valued under $US800 dollars to bypass tariffs,” she said.
“The impact in Australia will primarily be felt by small businesses that sell directly to American consumers. This includes businesses specialising in sustainable clothing and gifts, as well as distinctly Australian goods such as cosmetics, food and wine. These parcels will now be subject to a 10 per cent baseline tariff.”
Dr Charwat added that the broader policy was aimed at large-scale online retailers. “The real target appears to be major overseas retailers like Shein and Temu that also export directly to consumers and avoid much higher baseline tariffs of 25 per cent or more that apply to Chinese imports,” she said.
She warned that the new measures were likely to hit US households. “American consumers are the real losers, facing either restricted access to overseas goods from online businesses or substantially higher prices to cover the tariffs. This is unlikely to play well to American voters who may also find that parcels from friends and family overseas will be impacted.”
Postal services across Europe have already halted most US-bound shipments. France’s La Poste, Germany’s Deutsche Post, Spain’s Correos, Poste Italiane and postal operators in Belgium, Sweden and Denmark stopped accepting parcels over the weekend, while Austria’s Österreichische Post and the UK’s Royal Mail announced similar moves.
India has followed suit, with its Department of Posts ceasing bookings of all US-bound mail from 25 August. The agency cited uncertainty around US Customs and Border Protection guidelines and the lack of clear mechanisms for duty collection and remittance, which has led air carriers to stop accepting postal consignments.
The changes follow a decree signed by President Donald Trump in July abolishing from 29 August a long-standing exemption that allowed small parcels under $800 to enter the US duty-free. For years, this system was widely used by overseas retailers and small exporters.
As the deadline approaches, businesses across Australia and beyond are now left to reassess their sales models, while consumers face a future of higher costs and restricted choice.
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